Gold Vs Silver Vs Equity: Which Gave Best Returns In 2025?

If 2025 had a mood board, Indian equities would be the sensible beige trousers, while the precious metals would be dripping in sequins.

Nifty 50, India’s benchmark equity index, is up a modest 10.69% year-to-date, trading near 26,172 compared to about 23,700 at the start of the year. Respectable, steady, but lacklustre when stacked against what’s been unfolding in commodities. Platinum has surged 130%, silver is up 132%, and gold has rallied nearly 70%.

Gold hit yet another all-time high this week, marking its 50th record-breaking session of 2025. Prices crossed $4,480 an ounce for the first time as investors digested rising geopolitical tensions and the growing belief that US interest rates could head lower next year.

The domestic price of 24-karat gold surged past the Rs 1,37,070 per 10-gram mark today (Dec. 23).

Escalating tensions in Venezuela, including US actions targeting oil shipments, have reinforced gold’s appeal as a hedge against uncertainty. Add to that, the sustained ETF inflows and steady central bank accumulation.

Platinum prices have climbed to a 17-year high, driven by persistent market deficits and renewed trading activity linked to a new Chinese futures contract.

According to the World Platinum Investment Council, the global platinum market is heading for an 8,50,000-ounce deficit in 2025, following last year’s 9,68,000-ounce shortfall. Three straight years of deficits have pushed inventories to their lowest level in a decade.

Mine output is expected to fall 6% this year, with South Africa — the world’s largest producer — heading toward its weakest production in 25 years outside strike or shutdown periods.

Demand, meanwhile, is holding firm. Automotive usage remains steady, jewellery demand in China and India is expected to rise 11% going forward, and investment demand through bars, coins and ETFs is picking up.

Silver has been the undisputed star of 2025. Up more than 130% year-to-date, the so-called 'devil’s metal' has combined gold-like safe-haven appeal with the muscle of industrial demand.

Electric vehicles, solar power, data centres and electrification have all boosted silver consumption, just as supply deficits persist. A weaker US dollar has made dollar-priced silver cheaper for global buyers, while speculative inflows have added momentum.

In India, silver neared the Rs 2,12,860 per kg milestone in major cities today.

Analysts expect both gold and silver to retain upside potential in 2026, albeit with sharper corrections along the way. Both metals offer portfolio diversification benefits, but the path ahead will be volatile.

The long-term drivers for gold — geopolitics, central bank buying and ETF demand — remain intact. That said, analysts caution against blind momentum chasing. Estimates suggest gold could still see 10–12% upside, but if risk sentiment improves or ETF flows reverse, a 15–20% correction cannot be ruled out. Th Outlook for silver is similar, and while the white metal carries 20–25% upside potential, history suggests corrections of 28–30% are very much possible, especially if ETF-driven demand cools.

Global brokerages remain bullish on India’s medium-term growth. Sensex targets for 2026 range between 94,000 and 95,000, while Nifty projections stretch from 28,300 to as high as 30,000. The message is clear; stock markets may have lagged this year, but confidence in India’s growth trajectory remains intact.

For investors, the takeaway is less about choosing sides and more about balance. Gold for stability, silver for selective growth, equities for long-term compounding — and, above all, resisting the urge to chase shine purely out of hype.